Monthly baraometer of pension annuitization attractiveness for frozen pension sponsors looking to reduce pension obligations impact on company P&L.

1. PENSION RISK TRANSFER INDEX ™
October 2011 PRT Index Level
What is the Dietrich Pension Risk Transfer (PRT) Index ™ ?
The Dietrich Pension Risk Transfer Index ™ has been designed to create a monthly 88.23
benchmark that tracks the relative attractiveness of annuitizing accrued pension
obligations by considering three key underlying financial ratios 80 95 105 120
 Funded Status Level (50% Index Weight) Annuitization Attractiveness
 Current /Historical Annuity Rates (30% Index Weight) Plan/Monitor Opportunistic Settlement Attractive
 Annuity Rates vs. Treasury and Corporate Bonds (20% Index Weight) Sept 2010: Jan 2009:
PRT Index =82.7 PRT Index =121.4
Annual PRT Index PRT Index Monthly PRT Index PRT INDEX
140
108.00
130
103.00
120 110.6 121.4
98.00
110
93.00
100
88.00
90
80 91.5 90.0 83.00
70 78.00
Jan-08 Jan-09 Jan-10 Jan-11
Effective 9/1/2011
Commentary:
Continued decline in interest rates drives pension funding to lowest levels seen in last twelve months. Absolute annuity rates near historical lows, with annuity spreads
providing significant value relative to US Treasuries and Corporate Bonds.
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